Full text: Borrowing and business in Australia

the ultimate outcome of the reorganization of British industry 
should be increased productivity and, consequently, increased 
capacity to lend, the immediate effect will inevitably be to 
curtail, if not to stop entirely, British foreign loan issues. Com- 
petition for markets with countries whose industrial organiza- 
tion and technical improvement was not impeded by the war 
will intensify and prolong the British effort to regain her pre- 
war status; but the drain on available capital supplies will be 
correspondingly increased. 
On the other hand, however. it is to be thought that invisible 
exports, both of capital and services, from Great Britain have 
been grossly under-estimated. The ‘flight of capital’ from taxa- 
tion, unrecorded receipts from overseas, and international 
‘windfalls’ of one sort and another undoubtedly modify the 
situation as presented above; but not sufficiently to invalidate 
the truth of the assertion that Britain’s power to export capital 
has dwindled in a very marked manner; and little but dis- 
advantage is to be gained bv postponing the determination to 
reorganize Australian internal resources in accordance with the 
changed situation abroad. 
Another possibility in the situation operates in the direction 
of lightening the incidence of the overseas debt by increasing 
the number of burden-bearers. Hand in hand with a more 
effective use of the national resources goes the necessity for an 
increase of both producers and consumers in Australia. A rapid 
increase of population by means of immigration would, through 
the increase of both producers and consumers, relieve the 
pressure in several ways. First, as producers effectively engaged 
in development, the new-comers should enlarge the volume of 
disposable income. At the same time they would take up some 
of the weight of taxation. But it is to be thought that the greater 
effect would be felt by reason of the increase of consumers. The 
present capital equipment, especially in the form of railways, 
roads, irrigation, postal and other public services, is adequate 
in the settled districts for a much greater population and a vastly 
enlarged volume of transport. Rapid growth of population 
would, by a greater use of these facilities, ensure a larger return 
apon much of the capital sunk in these enterprises; and would 
tend to diminish the steady drain upon production represented 
by persistent deficits. Further, the increase in demand repre-

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